This report documents the factors involved in the consideration of two bills by the Minnesota legislature in 1977. The first bill, designed to increase the level of state foundation aid to education, was affected by public concern over inflation and property tax rates and by the impact of enrollment decline. Lobbying efforts by organizations of teachers, administrators, and school boards were limited in effect as a result of these public concerns. While the first bill passed, the second, intended to consolidate the state's 438 school districts into 92 countywide districts, failed to get out of committee due to strong opposition. Issues involved in consideration of the second bill included local control, salary equalization, and the continued existence of at least one major teachers' union. (Author/PGD)